Sophie Taylor, senior associate, looks at the top stories for the week ahead.
The conflict in the Middle East will dominate global attention this week. Overnight an RAF base in Cyprus was targeted in a suspected drone attack. Despite this, the government maintains it will not join offensive action now, instead maintaining a defensive position to protect British personnel and allies. This includes allowing the US to use British military bases for defensive strikes.
Donald Trump has described the military action as a campaign to change Iran’s regime, an objective which feels on track following the death of its supreme leader, Ayatollah Ali Khamenei. However, the shape of a new regime is unknown.
Meanwhile, oil prices have risen (£), anxious market traders are seeking safe havens (£), and the US has already suffered its first casualties.
Turbulent markets are not the background chancellor Rachel Reeves would have chosen for delivering her Spring Statement tomorrow. She has set expectations for a “boring” update and aims to reassure business that Britain is fiscally stable.
In Scotland, we can expect further questions this week over the Queen Elizabeth University Hospital scandal (£), following a new report which shows concerns about ventilation systems and cleanliness were raised as recently as two months ago, despite first minister John Swinney insisting only days ago that the facility was “safe”.
In brief - Scotland's economy and business
UK government energy minister, Michael Shanks MP, said that despite being taken into public ownership for decommissioning, the Hunterston B nuclear power station in North Ayrshire could yet be revived with a new reactor (£) if the SNP removes its opposition to the form of energy.
A public consultation on whether to ban social media for under-16s is being launched today, inviting young people and their parents and guardians to submit comments ahead of a government decision on the proposal, which would apply across the UK. The consultation will close on 26 May, with the UK government planning to respond in the summer.
Scotland has become the first country in the UK to legalise water cremations. The process, which is called alkaline hydrolysis, offers families a third option to burial or traditional cremation. The company supporting the introduction of the practice in Scotland described it as the biggest change to cremation law since it was introduced in 1902. Considered “green cremations”, this practice already happens in countries like the US and Ireland.
The Scotsman and Insider Media have teamed up for a weekly Saturday business supplement, Scotsman Insider. For its first edition, it has published an inaugural list (£) of 75 independently owned businesses expected to grow significantly over the next 12 months, with Graham Hygiene Services in Blairgowrie topping the list.
OpinioNation - columns of interest
Philip Rae, investment specialist at Baillie Gifford, looks at where value and vulnerability sit in the software industry in the age of AI. Many investors have been guided by the claim that “software is eating the world”, but now a new narrative has taken hold: that AI will eat software itself. Rae argues in The Herald that the new notion is misleading – software is not disappearing, but instead “the balance of value within the system is shifting” (£). The central task for long-term investors is distinguishing between businesses whose advantages are being eroded and those whose roles are becoming more important.
The commercialisation and business side of sports has become as vital as actual sporting results, Ross Tuffee contends in The Scotsman. Looking at Hearts’ recent performance as an example, Tuffee highlights the value of Scotland positioning itself as a hub where entrepreneurs and businesses come to develop, test and scale cutting-edge sports tech (£).
The result of the Gorton and Denton by-election confirms that the traditional model of British politics, dominated by two big parties, is breaking down. In The Guardian, John Harris argues that voters are looking for something new and Labour must understand why. By being defensive rather than reflective, the party risks becoming irrelevant in 21st century politics. Also writing in The Guardian, London mayor, Sadiq Khan, recognises this notion, agreeing that this loss shows “a political strategy of taking liberal, progressive voters for granted is clearly flawed”.
Shifting the dial - recent research
The Diffley Partnership published its latest Understanding Scotland quarterly survey, which measures the most important facets of our lives and decision-making in Scotland: our society, economy, and environment.
Across multiple indicators, the latest results point to a modest easing of the deep pessimism that characterised much of the previous two years. Key findings include:
- Views on Scotland’s direction of travel have softened, representing the least pessimistic outlook in over a year. Just over half (53%) believe the country is heading in the wrong direction, down six points from November, while optimism has risen modestly to 26%.
- Healthcare (48%) and the cost of living (43%) continue to top the list of national priorities and remain the leading issues at local level. Immigration holds its position as the third most cited concern both nationally (23%) and locally (20%).
- While 62% continue to say general economic conditions have worsened over the past year, this is down seven points from November, and the proportion saying conditions are “about the same” has risen sharply to 33% (+6).
The week ahead - fill your diary with key events
Monday
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Westminster
- Commons, debate: e-petition 734311 relating to the public being given a right to a vote of no confidence
- Commons, debate: e-petition 747234 relating to the Secretary of State’s power to cancel local elections
- First Delegated Legislation Committee, debate: The draft National Minimum Wage (Amendment) Regulations 2026
- Paris: OECD Financial Markets Week Spring 2026 begins
- Reports: S&P Global manufacturing purchasing managers’ index (PMI) data; Nationwide February House Price index
Tuesday
- The Association for Scottish Public Affairs will host its annual conference, held at Dynamic Earth in Edinburgh
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In the Holyrood chamber
- Stage 3 Proceedings: Contract (Formation and Remedies) (Scotland) Bill
- Reconsideration Stage Proceedings: European Charter of Local Self-Government (Incorporation) (Scotland) Bill
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In the Holyrood Committee rooms:
- The Net Zero, Energy and Transport Committee will take evidence on the Public Services Reform (Scottish Water) Order 2026; the Renewables Obligation (Scotland) Amendment Order 2026; and the Draft Climate Change Plan
- The Finance and Public Administration Committee will take evidence on the Scottish Fiscal Commission's latest Fiscal Sustainability Perspectives report and the Infrastructure Delivery Pipeline 2026
- The Health, Social Care and Sport Committee will take evidence on sport and physical activityThe Local Government, Housing and Planning Committee will consider the Visitor Levy (Amendment) (Scotland) Bill at Stage 2
- The Delegated Powers and Law Reform Committee will consider correspondence with the Scottish Government on the Building Safety Levy (Scotland) Bill
- Scottish Government data
- Alcohol and Drug Partnerships in Scotland: Annual Survey 2024/25
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Westminster
- Commons, Spring Forecast Statement (The Chancellor of the Exchequer)
- Lords, oral questions: Potential impact of the Defence Industrial Strategy 2025 on promoting economic growth and job creation in English regions and devolved nations
- Lords, legislation: Tobacco and Vapes Bill – report stage (day 2)
- Housing, Communities and Local Government Committee, oral evidence (Angela Rayner and Michael Gove): Draft Commonhold and Leasehold Reform BillIn the Holyrood committee rooms
- UK: Office for Budget Responsibility publishes its latest economic and fiscal outlook, alongside the chancellor’s Spring Statement
- US: Midterm primaries begin; Donald Trump to host German chancellor Friedrich Merz at the White House
Wednesday
- In the Holyrood chamber
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- Portfolio Questions: Rural Affairs, Land Reform and Islands; Health and Social Care
- Scottish Liberal Democrats Debate: Education
- Scottish Liberal Democrats Debate: Transport
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In the Holyrood committee rooms
- The Economy and Fair Work Committee will take evidence on the Cyber Security and Resilience (Network and Information Systems) Bill (UK Parliament legislation)
- The Rural Affairs and Islands Committee will take evidence on wildfires in Scotland
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Westminster
- Commons: Prime Minister’s Question Time
- Commons, debate: Scotland’s contribution to energy security and net zero
- Scottish Affairs Committee, oral evidence: GB Energy and the net zero transition
- Energy Security and Net Zero Committee, oral evidence: The cost of energy
- Treasury Committee, oral evidence: Financial Inclusion Strategy
- UK: Andy Burnham delivers a speech on Manchesterism in London
- EU: European Commission expected to announce details of its troubled “Made in Europe” plan
- Reports: S&P Global services PMI data; EU January unemployment figures
Thursday
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In the Holyrood chamber
- First Minister’s Questions
- Portfolio Questions: Social Justice and Housing
- Stage 3 Proceedings: Digital Assets (Scotland) Bill
- Net Zero, Energy and Transport Committee Debate: Climate Change Plan
- Westminster
- Commons, Business Questions
- Lords, legislation: Tobacco and Vapes Bill – report stage (day 3)
- China: National People’s Congress annual session for the country’s top legislature opens in Beijing
- Reports: S&P Global construction PMI data
Friday
- Italy: Winter Paralympics open
- UK: Conservative Party Spring Conference kicks off, continuing until Sunday
- Reports: Halifax House Price Index
Saturday
- UN International Women’s Day
- UK: Presentation of the Best in Show award at Crufts dog show in Birmingham